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  3. Private financial contributions

How to manage private contributions & withdrawals

What is considered a private contribution? There are two basic types of private deposits:

  • Cash deposits: Here you pay money from your private financial resources into the company coffers.
  • Contributions in kind (https://debitoor.de/lexikon/sacheinlagen): This is a non-monetary contribution, such as a private car that is used for business trips.

What is private removal?

For private withdrawals, a distinction is usually made between the following:

  • Cash withdrawals: The entrepreneur withdraws cash from the cash register.
  • In-kind withdrawals
    • of material, accessories or the like (example: the owner of a car workshop takes a car tire for the private car.)
    • of products (example: the owner of a butcher takes a few slices of ham out of his shop for dinner.)
  • Usage withdrawals (example: the owner uses the company cell phone for private phone calls.)
  • Service withdrawals (example: the employee of a nursery brings the garden of the owner up to scratch.)
  • PLEASE NOTE: * Incorporations (GmbH, AG, KGaA), however, the shareholders have no such access to the company's assets. Society and shareholders are strictly separated from each other, so that classic private contributions are not possible. If you still want to support your GmbH financially, the share capital can be increased or a loan can be granted.
  • Is there a * GmbH (https://www.selbststaendig.de/gmbh-gruenden)* private withdrawals? *

No, there are no private withdrawals in a German GmbH. The money that managing directors or partners withdraw from or supply to the company is offset via the so-called partner account. In a GmbH, it is very important to separate the privacy of shareholders or managers from the corporate sphere. Every economic relationship between the GmbH and shareholders or managing directors must be treated as if it were a third-party supplier. Example: If a partner deposits money in a GmbH, it is a loan. This has to be paid interest.

 

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